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Chicago faculty board members clashed over a controversial cost to a metropolis pension fund as they weighed in on the district’s $10.2 billion funds proposal unveiled for the primary time Wednesday.
The funds, which covers the 2025-26 faculty yr, was delayed properly previous the July 1 begin of the fiscal yr as a result of former CEO Pedro Martinez’ departure earlier this summer time and efforts to shut a gaping $734 million funds deficit.
Interim CEO Macquline King, a former mayor’s workplace worker, put ahead the spending plan, which the 21-member faculty board should approve by the tip of the month. It doesn’t embody a reimbursement to the town for the $175 million cost to a pension fund protecting non-teaching CPS workers together with metropolis workers — although in contrast to final yr’s funds, it units a purpose of constructing the cost in case of an surprising inflow of funding. The proposal additionally doesn’t contain taking out a short-term, high-interest mortgage to stability the funds, an concept the mayor’s workplace has beforehand championed.
The funds proposal assumes CPS would get $379 million from a metropolis pool of taxpayer {dollars} for financial improvement, often called surplus Tax Increment Financing, or TIF, {dollars} — an unsure proposition at a time when the town faces its personal budgetary woes.
Plenty of faculty board members — primarily these appointed by the mayor — sharply criticized the choice to not funds for the pension cost. They argued that this transfer would alienate the town and mayor’s workplace and endanger the probability that CPS will get extra TIF surplus funding. A pair members introduced up the opportunity of borrowing, together with particularly to make the pension reimbursement.
“If we’re going to behave like we don’t care in regards to the metropolis funds,” Michilla Blaise, one of many 11 Johnson-appointed members, stated, “why ought to they care about ours?”
However different members praised district officers for presenting a balanced funds that doesn’t embody workers furloughs or cuts immediately affecting the classroom. They stated making the pension cost would translate into painful funds cuts, whereas taking out a mortgage would imply steep curiosity and different prices at a time when CPS already pays $1.06 billion a yr to service its debt.
“Why would the training mayor come down and shake CPS down for $175 million?” stated elected member Angel Gutierrez, noting Johnson’s transition group urged him to not saddle CPS with the cost. “It simply doesn’t make any sense to me.”
The funds proposal displays a complete of $272 million in cuts, together with to the district’s central workplace workers in addition to custodial companies, crossing guards, cafeteria workers, and extra. Earlier than Wednesday’s board assembly, SEIU Native 1, the union that represents some district custodians, held a protest in opposition to job cuts affecting its members. Custodians held mops and chanted “Preserve faculties clear” in entrance of district headquarters and decried the cuts, which they stated blindsided their union and can end in dirtier faculty buildings.
District officers outlined steps to shut the deficit
The district will host two funds boards to get enter from the general public on at 1 p.m. and 4:30 p.m. Aug. 19 at district headquarters, at 42 W. Madison St. The board is slated to vote on the funds proposal at its Aug. 28 common assembly.
Earlier this summer time, King estimated the funds deficit at $734 million, factoring within the pension cost to the town. Her predecessor, Martinez, whose refusal to make the pension reimbursement or take out a short-term, high-interest mortgage contributed to his firing, overlooked the cost and despatched native faculties their budgets assuming a deficit of $529 million.
On the Wednesday assembly, the district’s chief funds officer Mike Sitkowski stated the proposal was knowledgeable by enter from residents who urged the district to guard classroom instruction, resist extra high-cost borrowing for working prices, and forego the town pension reimbursement. The district is taking up $2.4 billion in new long-term debt to pay for upkeep of its getting older faculty buildings. The brand new funds proposal consists of $556 million in capital bills.
Along with the cuts, Sitkowski defined that officers closed this yr’s funds hole because of an surprising enhance in state funding, a refinancing of some district debt in a method that ensures longer-term financial savings, and a call to dip right into a “wet day fund” put aside particularly to assist make debt funds, amongst different means. He stated this yr’s funds will imply a smaller funds deficit for the 2026-27 yr, although it stays vital at $520 million.
“This funds absolutely protects our faculty buildings,” Sitkowski stated. “It avoids the chance of beginning-of-year or midyear cuts to varsities.”
Some faculty board members hailed King’s proposal for resisting the strain to tackle the pension cost to the town. District leaders stated CPS goals to make that cost if it receives greater than the tax surplus {dollars} it’s requesting — or if the state comes by means of with further funding. The town is on the hook for the cost underneath state regulation and has made it traditionally, however Johnson has argued the district ought to take it on because it strikes away from mayoral management and towards a completely elected faculty board in 2027.
“This funds does actually heart the youngsters and shield our faculties,” stated elected board member Jessica Biggs.
However different board members echoed the mayor’s argument that it’s time for the district to take accountability for these retiree prices and voiced concern about a number of the latest funds cuts. Some stated they apprehensive that if the town doesn’t come by means of with the TIF surplus income the district is budgeting, that will imply disruptive midyear funds cuts or furloughs.
“I simply don’t suppose this actually is a balanced funds, and I’m very involved,” stated member Olga Bautista, one other Johnson appointee.
Board members requested if metropolis officers have weighed in
This week, district, mayor’s workplace, and labor leaders made one other push for extra state funding in a collection of closed-door briefings with state lawmakers and Chicago aldermen. That’s although Illinois legislators and Gov. JB Pritzker have repeatedly signaled they don’t suppose the state is able to steer extra {dollars} to the district.
Some board members pressed King and different officers on what metropolis leaders have signalled about their very own urge for food for steering extra money to CPS, however officers demurred, saying they first needed to current the funds to the varsity board.
“The query did come up, however I wasn’t going to get forward of the funds,” stated King, who in any other case deferred to Sitkowski to current the funds and area board member questions.
The district introduced earlier this month that it’s going to finish its custodial contracts with non-public firms and convey a few of these positions in-house, leading to a web lack of 480 janitor jobs. District officers have stated that bringing oversight of the remaining 2,100 custodians completely underneath district purview would end in cleaner buildings, even with significantly fewer custodians.
Union leaders and custodians stated the affected workers acquired little discover and should reapply for his or her jobs, shedding seniority and doubtlessly their present pay. They voiced skepticism that the remaining custodians can deal with cleansing the district’s faculties.
District officers harassed Wednesday that their proposed funds fulfills all obligations underneath latest labor contracts, together with the Chicago Lecturers Union contract accepted earlier this yr, which added about $1.5 billion in extra staffing and compensation prices over 4 years.
Throughout public remark, CTU officers once more known as on the board to redouble efforts to advocate with the state, highlighting a roughly $4,000 per scholar hole between what the state estimates can be ample funding for CPS and what the district now receives from the state. Jackson Potter, the union’s vice chairman, stated the CTU opposes cuts to crossing guard, custodian, and particular training classroom assistant positions.
Potter additionally stated CPS ought to completely tackle a number of the price of the municipal pensions since most of the lined workers work for the varsity district. He stated ensuring these pensions are funded is “an obligation” and “not a sizzling potato to be thrown round by CPS or the town.”
Mila Koumpilova is Chalkbeat Chicago’s senior reporter protecting Chicago Public Colleges. Contact Mila at mkoumpilova@chalkbeat.org.
